Comments for Asset Value in "t" years

The function in the first line of the problem statement did not display.

If you would like to resend it as an attachment, please do so. You can also send it as an image.

I don’t know what kind of assets company Rainbow has: savings accounts, bonds, stocks, land, machines, patents, customer goodwill, etc. Each of these assets will behave differently over the long run. For example, machines depreciate, patents and land could gain in value, etc.

Because of there is no information in the problem statement, I’m going to assume we can use the following formula for the sake of argument:

A = P*(1 + r)^t

A = final balance in an interest bearing account
P = principle (the initial deposit in the bank, or the Present Value of the Investment)
r = decimal form of interest rate for each period of time (annual)
t = number of years